The 10 Countries With The Biggest Gold Reserves In The World

Gold is tumbling today, trading at about $1,672.70. It's well off its 52-week high of $1,918.10 per ounce. Prices fell after the dollar rallied on concerns over Greece's debt swap and inflation stayed low in developed countries.

In 2011, global central banks continued to be net buyers of gold as they attempted to diversify from their dollar and euro holdings, rebalance reserves, and protect national wealth.

Purchases by central banks surged to 439.7 tonnes in 2011, from 77 tonnes the previous year, according to the World Gold Council (WGC). Mexico, Russia and South Korea were some of the largest buyers of gold. At 90.5 percent, Portugal is the country with the highest percent of its foreign reserves in gold.

We put together a list of the countries with the biggest official gold holdings as reported by the (WGC). We also included the percent of their foreign reserves they have in gold.

#9 Netherlands

Since 1991, the Dutch National Bank (DNB) sold 1,100 tonnes of gold. But, the bank considers gold to be "the ultimate reserve and anchor of trust in times of financial crisis," according to Zero Hedge, and holds it for diversification purposes. Nout Wellink, president of the Dutch central bank has previously said that the DNB doesn't intend to sell gold.

#8 Japan

In 2011, the Bank of Japan sold gold to pump ¥20 trillion into the economy to calm investors after the tsunami and resulting nuclear disaster in Japan. Meanwhile, the country's gold exports (which include private exports) are expected to reach 100 metric tonnes in 2011.

#7 Russia

Russia's central bank buys gold from the domestic market and Russian bullion banks, and purchased 15 tonnes of gold in the third quarter. Earlier last year the Central Bank of Russia said it planned to purchase over 100 tonnes of gold to rebuild its gold and Forex reserves.

#5 China

China reportedly made significant gold purchases in the final months of 2011 as it tried diversify from its holdings of U.S. Treasuries. China buys gold from its domestic market but doesn't always immediately put it towards its reserves.

#4 France

France is one of the countries that signed the Central Bank Gold Agreement which limits gold sales by European countries. The 19 signatories sold nearly 10 tonnes of gold in the first year of their new agreement (Sept. 2009 - Sept. 2010).

#2 Germany

Under the Central Bank Gold Agreement, Germany has sold 4.7 tonnes of gold since September 7, 2011. In November last year, the IMF said that Germany's central bank sold gold, but most of it was sold to the ministry of finance to mint commemorative coins. Germany also refused to have its gold holdings boost the EFSF.